In preparing the Statement of Cash Flows deprecation is added to net income when
ID: 2533431 • Letter: I
Question
In preparing the Statement of Cash Flows
deprecation is added to net income when calculating Cash From Operations (under the Indirect Method).
deprecation is added to net income when calculating Cash From Operations (under the Indirect Method) because depreciation is a non-cash expense.
Investing Activities and Financing Activities do not require any adjustments to net income.
All of the above.
deprecation is added to net income when calculating Cash From Operations (under the Indirect Method).
deprecation is added to net income when calculating Cash From Operations (under the Indirect Method) because depreciation is a non-cash expense.
Investing Activities and Financing Activities do not require any adjustments to net income.
All of the above.
Explanation / Answer
all of the given options are correct with respect to statement of cash flows.
Depreciation expense is a non cash expense. so it will add back to net income under indirect method. also investing activities and financing activities do not require any adjustments to net income.
So, answer is D. All of the above